What is Bitcoin (BTC)? Crypto 101 for Canadians

Bitcoin refers to both a network (the blockchain) and an asset (BTC). Bitcoin is pseudonymous, not fully anonymous. Its supply is capped at 21 million BTC. Buying and holding crypto involves risks, including volatility.

People use "Bitcoin" to mean two related things:

• Bitcoin (the network): the blockchain and rules that participants follow to validate and record transactions.
• Bitcoin (the asset): the unit of value that can be bought, sold, sent, received, and held on that network.

Essentially, Bitcoin is like a shared and public accounting system. It is open for anyone to verify, while BTC is the “balance” people transact within that system.
 

A Bitcoin wallet is a tool that helps users manage access to Bitcoin on the network. It stores or protects the information used to authorize transactions, often described as “keys.” A wallet is not the same thing as the Bitcoin blockchain, and it doesn’t “hold” coins like cash in a physical wallet.

Bitcoin ownership is recorded on the public blockchain, and wallets help users control and use it.
 

Yes. Canadians can buy, sell, and hold Bitcoin. However, Bitcoin is not legal tender in Canada. Bitcoin, like other crypto assets, is not issued or overseen as currency by the Government of Canada.

Canadian securities regulators (such as the Canadian Securities Administrators and provincial securities regulators) have cautioned that crypto assets are high-risk and have encouraged Canadians who choose to trade Bitcoin (and all crypto) to use platforms registered with Canadian securities regulators.
 

Owning Bitcoin, like any other asset, is never risk-free. Buying Bitcoin in Canada always presents risks that can be minimized by using reputable, regulator-aligned services.

Canadian regulators have cautioned that crypto assets are high-risk and can be volatile, and that using unregistered platforms can add additional risks because users' safeguards may not be in place.

When evaluating “safety,” it can help to separate market risk from platform and personal security risk. Market risk (price volatility) can’t be removed by any platform. Platform risk can be reduced by choosing services that are transparent about fees, custody, and account protection.

Ndax operates within Canadian regulatory requirements. Crypto assets are not covered by CIPF or deposit insurance.
 

No. Bitcoin and all cryptocurrencies are not qualified investments for registered plans under Canada Revenue Agency guidance. Some Canadians choose to get Bitcoin price exposure inside registered accounts by using certain Bitcoin ETFs or funds that are eligible to be held in a TFSA or RRSP through a brokerage.

Many beginners focus only on a platform’s advertised trading fee, but the “all-in” cost can include several parts. A trading fee is what a platform charges to execute a buy or sell. A spread is the difference between the buy price and sell price. Some platforms advertise “zero fees” but earn money through a spread instead of a visible trading fee.

Ndax lists a flat trading fee of 0.20% on buy and sell orders on its published fee schedule as of January 2026. A flat trading fee means the same percentage rate applies to each trade, regardless of size or order type.

If a user withdraws BTC to an external wallet, a network fee (paid to the Bitcoin network for processing the transfer) may apply. Fees range depending on a host of factors, but Ndax provides free withdrawals provided the user waits up to 12 hours for the transfer to complete.
 

Bitcoin works globally because many independent computers agree on the same transaction history.

The blockchain
Bitcoin’s blockchain is a public ledger that records transactions in blocks. Each block is linked to the previous one. This chain helps prevent old records from being manipulated or altered without the network detecting it.

Transactions and confirmations
When someone sends BTC, they are authorizing a transaction that moves control of Bitcoin from one address to another. The transaction is broadcast to the network, and miners include it in a block. After a transaction is included in a block, it receives confirmation. Additional blocks added after it provide additional confirmations. This generally increases confidence that a transaction is final.

Keys and control
Bitcoin ownership is dictated by cryptographic keys. In practice, this means a user either manages their own keys using a wallet (known as self-custody), or uses a custodial platform that manages custody on behalf of the user.

Mining and proof of work
Bitcoin uses a security mechanism called proof of work. Miners compete to add the next block of transactions to the blockchain. They are rewarded financially by the network for doing so. This process makes it expensive to rewrite transaction history and is a core part of Bitcoin’s security design.
 

One of Bitcoin's most important features is that its supply growth profile is predetermined.

Bitcoin was designed to have a capped supply of 21 million BTC. This means it does not follow the same supply model as most national currencies, where the money supply expands based on central bank policy decisions.

New Bitcoin enters circulation through the mining process. When miners add a block, they receive a reward often described as a “block subsidy,” plus transaction fees. Over time, the block subsidy declines.

A Bitcoin halving is a scheduled event that reduces the block subsidy by 50%. Halvings occur roughly every four years and are based on blocks, not calendar dates. The most recent halving occurred on April 20, 2024, reducing the mining reward to 3.125 BTC per block.

The next halving is expected around April 2028 based on Bitcoin’s programmed block schedule; exact timing can vary. When this happens, Bitcoin’s block reward will be reduced to 1.5625 BTC.

It is important for beginners to understand that scarcity itself is not a guarantee of price increase. It is one of several characteristics that market participants may value differently over time. 
 

Bitcoin’s price, like any asset, is determined by what buyers and sellers are willing to pay at any given moment. The most commonly cited reasons why users recognize value in Bitcoin include:

• Transferability: Bitcoin can be moved globally without relying on a bank’s payment rails.
• Verifiability: Ownership changes are recorded on a public ledger.
• Supply policy: The capped supply and halving schedule are designed to limit long-run issuance.
• Network effect: Widespread recognition and infrastructure can contribute to continued usage.

Investors who are skeptical of Bitcoin’s use case would focus on volatility, uncertain long-term adoption, and regulatory and policy risk. Traditional investors used to other asset classes (like stocks) may argue that Bitcoin doesn’t generate cash flow the way a publicly traded company does.
 

Bitcoin is not truly anonymous as all transactions are recorded on a public ledger. While addresses are not names, identities can sometimes be linked to addresses through real-world activity.

A practical takeaway for beginners is to treat wallet addresses and transaction details as sensitive information. 
 

Is it safe to buy Bitcoin in Canada?
Bitcoin can be bought legally in Canada, but it is not risk-free. “Safety” depends on factors like market volatility, platform practices, and a user’s individual security habits.

Can I buy Bitcoin in my TFSA or RRSP?
No. CRA guidance states cryptocurrencies like Bitcoin are not qualified investments for registered plans.

Who created Bitcoin?
Bitcoin was created by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. The Bitcoin concept or white paper was released in 2008 and the Bitcoin network launched the following year.

Can I buy less than one Bitcoin?
Yes. Bitcoin is divisible, so buying a fraction of a BTC is common.

What does BTC stand for?
BTC is the ticker symbol used to represent Bitcoin.

How long does a Bitcoin transaction take?
Transaction timing depends on network conditions; confirmations can take minutes or longer during congestion.

Is Bitcoin anonymous?
No. Bitcoin is pseudonymous because all transactions are recorded on a public ledger.

What is a satoshi?
A satoshi is the smallest unit of Bitcoin, specifically 0.00000001 BTC.

Does Bitcoin’s fixed supply guarantee the price will go up?
No. Limited supply is a design feature, but price depends on market demand and many other factors.

Next lesson in Crypto 101 for Canadians: What is Ethereum (ETH) and how is it different from Bitcoin?